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Dec 31, 2024
Modivcare Q4 2024 Earnings Report
Modivcare reported stable revenue but a widened net loss in Q4 2024 due to higher service expenses and interest costs.
Key Takeaways
Modivcare's Q4 2024 revenue remained flat at $702.8 million. The company reported a net loss of $23.5 million, significantly higher than the $5.3 million loss in Q4 2023, primarily due to increased service expenses and interest costs. Adjusted EBITDA declined 20.0% year-over-year to $40.4 million, reflecting weaker gross margins. Despite these challenges, the company generated $30.0 million in operating cash flow and secured a $75.0 million incremental term loan to support liquidity.
Revenue remained flat year-over-year at $702.8 million.
Net loss widened to $23.5 million due to higher service costs and interest expenses.
Adjusted EBITDA fell 20.0% to $40.4 million as gross profit declined.
Company secured a $75.0 million term loan to enhance liquidity.
Modivcare
Modivcare
Modivcare Revenue by Segment
Revenue by Segment
Monitoring Revenue
CapyFin.com Forward Guidance
Modivcare expects stabilization in utilization trends and working capital improvements in 2025, with a focus on cost management and operational efficiency.
Positive Outlook
- Service revenue expected to stabilize in 2025 as utilization levels normalize.
- Company secured a $75.0 million term loan to support liquidity.
- Working capital expected to improve with contract structure transitions.
- Continued growth in the PCS segment, with a 3.0% revenue increase in Q4.
- Operational efficiency initiatives to improve long-term profitability.
Challenges Ahead
- Net loss widened significantly due to higher service and interest expenses.
- Adjusted EBITDA declined 20.0%, reflecting margin pressure.
- Gross profit declined across all segments due to rising service costs.
- NEMT revenue fell 0.8% year-over-year, reflecting contract churn.
- Challenges in reimbursement rates and Medicaid redetermination.